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2012 (2) TMI 539 - AT - Income TaxDisallowance on account of debit balance written off - Held that:- When the mater was carried before the 1st appellate authority, he has perused the details and outstanding balance and has noted that it was a business decision to write off the amount as bad debt for the year under consideration. With this brief background, we have been informed that now this issue stood settled by the Hon’ble Supreme Court in the case of TRF Ltd as reported in (2010 (2) TMI 211 - SUPREME COURT). This ground of the revenue is therefore, dismissed. Unexplained investment in stock - Held that:- When inventory of stock was taken at the close of the accounting period, the same was not recorded therein. Next, in respect of the other item of controversy, a list of all the sales involved through which the stock was dispatched to various parties along with their names, invoice number, placed on record. As per the said details, the dates of invoices were starting from 28.03.2005 to 31.03.2005 and on this basis, it is claimed that the said stock was not accounted for in the books of account. We are of the view that the reason given by the assessee for non inclusion of these two items in the books of account on account of close of accounting period was genuine as also acceptable. We, therefore, find no fallacy in the relief granted by the Ld. CIT(A). The same is hereby confirmed and this ground of the revenue is dismissed. Addition on expenditure incurred on foreign raining of the Director’s daughter as employee of the assessee company - Held that:- This issue is squarely covered by the decision of Hon’ble Karnataka High Court rendered in the case of RAS Technologies (2010 (7) TMI 670 - KARNATAKA HIGH COURT ) wherein the expenditure for foreign education of Managing Director’s son was held as business expenditure and therefore, directed to allow the same. Following this decision and the decision referred by Ld. CIT(A), we hereby confirm the relief and resultantly, this ground of the revenue is hereby dismissed.
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